Asked by Olivia Wilma on May 09, 2024
Verified
A single cost pool is used when allocating overhead using the activity-based costing method.
Single Cost Pool
A simplified accounting method that aggregates all costs into one category.
Activity-based Costing
An accounting method that assigns costs to products or services based on the activities and resources that go into producing them, providing precise cost information.
- Acquire knowledge about how activities act as cost bearers in Activity-Based Costing.
Verified Answer
MH
Meagan HernandezMay 15, 2024
Final Answer :
False
Explanation :
Activity-based costing uses multiple cost pools to allocate overhead, each pool representing a different category of cost driver. This allows for more accurate allocation of overhead costs to products or services.
Learning Objectives
- Acquire knowledge about how activities act as cost bearers in Activity-Based Costing.
Related questions
Activities Are the Cost Objects of the First Stage of ...
Which of the Following Are Usually Included in Traditional Cost ...
Adelberg Corporation Makes Two Products: Product a and Product B ...
Doles Corporation Uses the Following Activity Rates from Its Activity-Based ...
Desjarlais Corporation Uses the Following Activity Rates from Its Activity-Based ...